Rep. Tom Petri, R-Wis., had asked the House Ethics Committee to review his actions on behalf of a company in which he owns stock. / Gary C. Klein, Sheboygan Press Media

by Donovan Slack, USA TODAY/ Gannett Washington Bureau

by Donovan Slack, USA TODAY/ Gannett Washington Bureau

WASHINGTON - A nonpartisan watchdog group is crying foul over the "obvious conflict of interest" between Rep. Tom Petri's official actions and his personal finances.

Craig Holman, senior legislative director for Washington-based nonprofit Public Citizen, said the Office of Congressional Ethics should investigate the Wisconsin Republican's advocacy on behalf of a defense contractor in which he owns a considerable amount of stock.

"This is not just benefiting a major campaign contributor, this is going into his own pocket," Holman said in an interview.

The Gannett Washington Bureau reported last weekend that Petri bought hundreds of thousands of dollars worth of stock in Oshkosh Corp., a military truck manufacturer based in his district. He then pressed colleagues on Capitol Hill and officials at the Pentagon to help the company retain a $3 billion military contract and escape Pentagon cuts. At the same time, the value of his investment in Oshkosh has grown 30%.

House ethics rules prohibit members from using their official position for personal gain, but they are murky and are interpreted on a case-by-case basis by the House Ethics Committee, which is responsible for enforcing them.

The independent Office of Congressional Ethics typically conducts preliminary reviews and if warranted, refers cases to the committee for further action.

"This particular situation certainly merits an investigation, and it would be something that would be appropriate for the Office of Congressional Ethics to take a closer look at," Holman said. "The connection between official favors and personal benefits is so close here that it is worthy of an investigation."

A spokesman for Petri, who declined to be interviewed, said the congressman's personal stock ownership did not influence his official actions on behalf of Oshkosh Corp., which employs thousands in his Wisconsin district.

"Working with the Wisconsin delegation to support fair treatment for a local employer led to the creation of thousands of middle-class jobs in his district - and any constituent company receives the same treatment," spokesman Lee Brooks said. "This is part of his job as an elected representative and what his constituents expect him to do."

In addition, Brooks maintained that he followed Ethics Committee guidance whenever there was a potential conflict of interest.

"Because he owns stock in Oshkosh Corporation, he takes extra steps to check with the Ethics Committee before acting," he said. "He has always strictly adhered to Ethics Committee advice and will continue to do so."

A spokeswoman for the Office of Congressional Ethics declined to comment, citing the office's policy not to confirm or deny any plans to investigate.

As a matter of process, the office launches investigations after two of its eight board members conclude there is "reasonable cause" to believe a violation of House Ethics rules may have occurred. They may take up a case after receiving a complaint or independently. Members are appointed by House Democratic and Republican leaders.

The office notifies targets in Congress if it has launched a probe but not the public. The results of an investigation only become public if they are referred to the House Ethics Committee.

The House Ethics Committee has sole jurisdiction over enforcing the rules and can recommend that the full House take further action, up to and including censure or expulsion. Both are extremely rare.

Ethics watchdogs say Petri's situation deserves scrutiny because he contacted executive branch agencies - in this case the Defense secretary and secretary of the Army - in 2009 in an attempt to preserve and expedite the awarding of the $3 billion truck-manufacturing contract to Oshkosh.

In addition, he asked colleagues in Congress to reject $101 million worth of cuts the Pentagon wanted to make to its budget for the trucks in 2013. His House colleagues blocked $80 million worth of cuts.

At the same time, Petri's investments of $265,000 to $650,000 in Oshkosh stock grew in value to between $340,000 and $863,000, a gain of 28% to 33%, a Gannett Washington Bureau analysis found.

"Petri's really just placed himself into a hornets' nest," Holman said. "Even if he isn't providing any particular favors to benefit his own investments, it has every appearance of that."

The Democratic Party of Wisconsin lashed out at Petri following the Gannett report on his intersecting personal finances and political actions.

"Tom Petri can't be bothered to support an increase in the minimum wage or an extension of needed unemployment insurance, but he has all the time in the world to take care of special interests - especially his own interests," spokeswoman Melissa Baldauff said. "Like the rest of the Republicans in Congress, Tom Petri is unbelievably out of touch with the needs of middle class families."